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CHR accuses govt. of excessive printing of money in violation of agreement with IMF

Published

5 months ago

2025/08/20

Keerthi

The Center for Human Rights and Research (CHR) Sri Lanka, in a statement issued recently has alleged that the National People’s Power (NPP) government excessively printed money in violation of the agreement reached with the International Monetary Fund (IMF).

Executive Director, CHR, Rajith Keerthi Tennakoon said that printing of money, declining foreign reserves, and rising domestic debt could pose a significant challenge to achieving the year’s economic development targets, it said in a statement.

Tennakoon said: “From October 2024 to June 2025, the Central Bank of Sri Lanka printed Rs. 1,225.9 billion (or Rs. 1.2 trillion). The printing of money in violation of agreements with the International Monetary Fund could be the beginning of the country heading towards an economic crisis once again, according to the statement.

Contrary to the guidelines of the International Monetary Fund, the Central Bank printed Rs. 210.3 billion (10.4% expansion) in June 2025 alone. Rs. 233.90 billion was printed in March 2025, the highest amount printed in the first six months. During the Gotabaya regime, the economy was devastated by excessive money printing (e.g., the April-May 2022 expansion of 17 -20%). It is the joint responsibility of Parliament and the Central Bank to take appropriate steps to prevent the country from experiencing another financial crisis, it said.

The country’s debt has been increasing rapidly since the Presidential Election last September. Following the formation of the new government, Sri Lanka’s domestic debt, which stood at Rs. 17,595.05 billion as of April 2025, has increased to Rs. 18,629.86 billion, representing an additional Rs. 1,034.81 billion.

Under the new government, the country’s total domestic and foreign debt has increased from Rs. 28,574.65 billion to Rs. 29,480.39 billion, representing an increase of Rs. 905.74 billion. Although the amount of foreign debt has declined, this is mainly due to continued domestic borrowing through the issuance of treasury bonds and bills.

The Rs. 65 billion bond issue presented by the Central Bank on August 12 was not entirely sold. There was not a single bid for the 2032 bond (8% interest). This is a clear red light for the domestic borrowing policy.

The foreign reserves, which were $6.531 billion in June, fell to $6,080 million by the end of June. The foreign reserves in July were $ 6.114 billion. The ‘reserves’ are also announced, including derivative contracts through swaps.

However, when the swap exchange value is removed, the country’s net reserves, which were $2,799 million in March, have decreased to $2,210 million as of June, as follows.

Of the total reserves in December 2024, $6,122 million, Swap was $3,548 million, and net reserves were $2,574 million.

As of June 2025, the total reserves stood at $6,080 million, comprising $3,870 million in Chinese and other swaps and $ 2,210 million in net reserves. Accordingly, the decrease in net foreign reserves from December 2024 to June 2025 is $ 364M.

When the early signs of the economic collapse of 2021 – 2022 emerged, people with quantitative knowledge warned about money printing, unlimited borrowing, and a decline in foreign reserves. Despite those warnings, hiding facts and criticizing critics, the 2022 ‘financial collapse’ developed into a massive economic crisis. It is the responsibility of the Central Bank, the Treasury, the Ministry of Finance, and the Parliament to identify the leading signs of a similar financial collapse sooner and take measures.

The printing of money by Rs. 1,225.9 billion, a decline in foreign reserves by $ 364 million, and an increase in the country’s debt by Rs. 905.74 billion will inevitably lead to a decrease in the country’s economic growth rate. It is a situation that will have long-term adverse effects.

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Warning for deep depression over South-east Bay of Bengal Sea area

Published

5 hours ago

2026/01/8

Priyan

Deep depression Track. [Source: RSMC]

Warning for deep depression over South-east Bay of Bengal Sea area.
Issued by the Natural Hazards Early Warning Centre, Department of Meteorology at 10.30 a.m. on 08 January 2026 for the period until 10.30 a.m. 09 January 2026

The depression in the Bay of Bengal to the southeast of Sri Lanka has intensified into a deep depression and is centered near latitude 5.4°N and longitude 85.3°E, about 420 km southeast of Pottuvil at 05.30 a.m. today (08th). The above system is currently (10:00 a.m.) located about 300 km southeast of Pottuvil.

It is very likely to move west-northwestwards across the southwest Bay of Bengal and cross the Sri Lanka coast between Hambantota and Kalmunai between 5.30 p.m. to 11.30 p.m. on Friday [9th January 2026].

Hence, showery, and windy condition over the island, particularly in the Northern, NorthCentral, Eastern, Uva and Central provinces is expected to enhance from today (08th).

For the Land area:

DAMAGE EXPECTED:
• Damage to huts, temporary shelters and light structures
• Destroy the roof tops/ sheets etc.
• Damage to power and communication lines.
• Breaking of tree branches and uprooting of large avenue trees.
• Damage to paddy crops, banana, papaya trees and orchards.
• Damage to harbor yachts
• Flash flood
• Sea water inundation in low lying areas in the near coast.

Action suggested for the Land area:
• Coastal hutment dwellers are advised to move to safer places. Other people in the affected areas to remain indoors.
• People living in hilly areas (particularly landslide prone areas) and low lying areas in river basins are requested to be vigilant.
• Drivers and people using roads in the hilly areas are requested to be vigilant.
• Beware of fallen trees and power lines.
• Avoid using wired telephones and connected electric appliances during thunderstorms.
• General public is requested to be vigilant regarding impending extreme weather situation.
• For emergency assistance contact the local disaster management authorities.
• Requested to be attentive about future advisories issued by the Department of Meteorology in this regard.

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Showers above 100 mm are likely at some places in the Eastern and Uva provinces and showers about 50-75 mm in other areas

Published

11 hours ago

2026/01/8

Priyan

WEATHER FORECAST FOR 08 JANUARY 2026
Issued at 05.30 a.m. on 08 January 2026 by the Department of Meteorology

The depression over the Bay of Bengal, located to the southeast of Sri Lanka, was centered near latitude 5.3°N and longitude 86.0°E, about 490 km southeast of Pottuvil, at 11:30 p.m. yesterday (07). It is expected to move west-northwestwards and towards the eastern coast of the island during next 24 hours. This system is likely to intensify further into a deep depression during the next 12 hours.

Cloudy skies can be expected over most parts of the island.
Showers or thundershowers will occur at times in the Northern, North-central, Eastern, Uva, Central and Southern provinces. Showers or thundershowers may occur at several places elsewhere in the Island after 1.00 p.m. Heavy showers above 100 mm are likely at some places in the Eastern and Uva provinces. Fairly Heavy showers about (50 – 75) mm are likely at some places in the other areas of the island.

Strong winds about (50-60) kmph can be expected at times over the Eastern slopes of the central hills, the Northern, North-central, North-western and Eastern provinces and in Hambantota, Gampaha, Colombo and Monaragala districts.

The general public is kindly requested to take adequate precautions to minimize damages caused by temporary localized strong winds and lightning during thundershowers.

News

Easter Sunday attacks: Govt. says wife of Katuwapitiya Church bomber alive

Published

12 hours ago

2026/01/8

Sahan Weerasooriya

Sara Jasmine

Minister of Public Security Ananda Wijepala told Parliament yesterday that information uncovered during ongoing investigations indicated that Pulasthini Mahendran, also known as Sara Jasmine, linked to the 2019 Easter Sunday terror attacks, was not dead.

Responding to a question raised by Opposition MP Mujibur Rahuman, the Minister said there was no confirmation that Sara Jasmine was currently in India, despite speculation to that effect. He added that investigators suspected she may have fled the country and stressed that further inquiries were underway to establish her whereabouts.

“If necessary, the government will take steps to obtain a warrant,” Wijepala said, noting that legal action related to the Easter attacks had already been initiated, based on available evidence.

Minister Wijepala said the new government had launched an thorough probe to determine whether a political or other conspiracy had been behind the attacks that killed more than 270 people in 2019. However, he declined to disclose certain details in Parliament, citing the risk of hampering investigations.

Sara Jasmine, Mohammed Hashtun, who bombed St. Sebastian’s Church, in Katuwapitiya, in 2019, was long presumed to have died in a suicide blast in Sainthamaruthu, days after the attacks. Wijepala said attempts by previous administrations to establish her death had failed, with recent reports indicating that DNA tests conducted at the time were inconclusive.

During the debate, MP Rahuman recalled that senior figures, including then-Opposition MP Nalinda Jayatissa, had previously claimed Sara Jasmine was in India. He questioned why authorities had not sought an open warrant for her arrest whether the issue had been raised in talks with Indian officials.

Wijepala, responding on behalf of Deputy Minister of Defence Arun Jayasekara, said the government would not hesitate to pursue legal action, including warrants, if necessary.

By Saman Indrajith